European Digital Sovereignty: Building a Continent to Compete with Big Tech
January 6, 2026
More than fifty years ago, a coalition of European aerospace companies from the UK, France, Germany, and Spain united to challenge America's Boeing. Today, this same collaborative spirit is being harnessed in the digital realm, as European nations strive to reduce their dependence on US-based tech giants and establish their own digital sovereignty.
From Aerospace to Cloud Computing: Long-Term Strategies for European Success
Airbus’s journey to compete globally highlights the importance of long-range planning. It took decades to reach profitability, with the successful A320 aircraft propelling the company into the black by 1995. Catherine Jestin, Airbus’s EVP of digital, advocates for a similarly patient, strategic approach to achieving digital independence—largely by investing in foundational infrastructure and industry cooperation.
US Cloud Giants and Europe’s Data Sovereignty Challenges
Microsoft acknowledges that it “cannot guarantee” data sovereignty, a concern echoing in the European context. US giants—AWS, Microsoft, and Google—are actively marketing their own sovereign cloud services to assuage customer fears about cross-border data access, especially after the erosion of trust caused by policies like the CLOUD Act.
Despite their assurances, legal ambiguities persist—particularly regarding whether European customers are protected from extraterritorial US laws when using these services. Lawyers are still clarifying the scope of legal protections, and compliance remains a work in progress.
GAIA-X: Europe’s Roadmap Towards Digital Independence
The EU-backed GAIA-X initiative, launched in 2019 through French and German political leadership, aims to create a federated, transparent, and secure cloud infrastructure. It envisions a multi-layered framework, with the strictest standards (Level 3) requiring companies to be European-based for full digital sovereignty. Currently, only a small fraction of companies qualify for this level, mostly reserved for highly sensitive or regulated sectors like defense and nuclear energy.
Jestin emphasizes that GAIA-X was never intended to be a European “David” to challenge Goliaths but rather to foster a sustainable digital ecosystem. The vision is to develop a resilient, interoperable, and sovereign digital infrastructure by supporting local providers and reducing dependence on foreign tech.
Europe’s Efforts to Foster Digital Ecosystems
At recent summits, European leaders discussed the importance of creating sovereign data spaces—standardized platforms facilitating sensitive data exchange among industry players. These projects involve over 150 initiatives, many still in early phases, tailored to sectors such as aerospace, automotive, energy, finance, and pharmaceuticals.
France's EDF, for example, is building nuclear plant data spaces involving thousands of suppliers. Such collaborations aim to demonstrate compliance with European sovereignty standards, gradually building a resilient and secure digital economy.
The Balance of Power: International Partnerships and Challenges
European ambitions are increasingly supported by partnerships with US tech giants. Companies like Google, Microsoft, and T-Systems are collaborating with European firms, a move Jestin interprets as skill-building opportunities—similar to how Airbus initially leveraged US aeronautics technology before developing its own industry.
However, reliance on American companies remains a concern. The fact that AWS is establishing a dedicated European organization raises questions about their compliance with European sovereignty criteria. Jestin remains cautious: if a vendor is subject to extraterritorial laws, it might not qualify for full certification under GAIA-X.
The Role of Governments and Public Funding
European governments are urged to shift from relying solely on private investments toward direct support through service contracts. Currently, over 70% of cloud contracts in Europe are awarded to US-based providers. Investment and strategic backing from public institutions are essential to foster European champions—potentially leading to a cohesive, independent digital industry.
Thiebaut Kleiner from the European Commission highlights that fostering a "European technology stack" depends on political will and coordinated public effort—yet bureaucratic and national interests often hinder swift progress.
The Future of European Digital Sovereignty
Achieving comprehensive sovereignty will require political consensus, strategic investments, and industry collaboration. The example of Airbus demonstrates that large-scale, cross-national initiatives can succeed with the right political support.
Jestin calls for a collaborative approach reminiscent of past successes: "We need to make choices, create joint ventures, and develop big European players committed to a shared goal." With ongoing geopolitical shifts and the current US administration's focus on digital sovereignty, Europe's digital future remains uncertain but full of potential.
Disclaimer: This article is a synthesis based on recent industry discussions and initiatives aimed at strengthening Europe's position in the global digital landscape.